Former Bank of Canada governor David Dodge is strongly disputing Conservative Party MP and leadership candidate Pierre Poilievre鈥檚 claim the central bank is 鈥渇inancially illiterate.鈥�
In an interview on CTV鈥檚 Question Period airing Sunday, Dodge, who was governor from 2001 to 2008, called the assertion 鈥渂ull****."
鈥淚鈥檓 very insulted by that鈥hey understand what's going on,鈥� he said, adding that the Bank of Canada鈥檚 navigation of the last two years has effectively kept Canada out of a 鈥渞eal depression鈥� coming out of the pandemic.
Poilievre鈥檚 criticism of Canada鈥檚 central bank is a key pillar of his leadership campaign. He鈥檚 questioned its independence, has vowed to have it audited, and will bar it from using its own digital currency.
On April 22, he that the 鈥淏ank of Canada says #Bitcoin-ers lack financial literacy. This from the same people who promised we鈥檇 have 鈥渄eflation鈥� right before inflation hit a 30 year high. It is our central bank that is financially illiterate. Restore sound money.鈥�
That comment came after the release of a Bank of Canada report noting that there鈥檚 been a slight demographic shift in Bitcoin owners in terms of gender, age and income level from 2018 to 2020 compared to 2017.
鈥淗owever, Bitcoin ownership remained concentrated among young, educated men with high household income and low financial literacy,鈥� .
It goes on to say that at the same time, 鈥淐anadians who are financially literate are more likely to be aware of bitcoin [than the average Canadian] but less likely to own it.鈥�
On another Poilievre stance -- that cryptocurrency allows people to 鈥渙pt out鈥� of inflation -- Dodge said 鈥渉e has no idea what he鈥檚 talking about.鈥�
鈥淗e鈥檚 just wrong because the issue of rising prices鈥hat you have to cope with out of your income is fundamentally at the moment a structural one,鈥� he said. 鈥淲e have limitations on supply, in part because of a war, in part because of COVID, in part because of ongoing features of the economy 鈥� we鈥檙e all getting older 鈥� the labour force is not growing as fast.鈥�
But Poilievre has said he isn鈥檛 trying to win over the opinions of past or current central bankers in his pledge to help every day Canadians suffering from the high costs of living.
"If you think I'm going to be silent about that to protect the ego of bankers and politicians, then you're in for a surprise," Poilievre told reporters on a campaign stop in Ottawa on April 28.
The Bank of Canada has been under fire as inflation continues to reach new heights. It currently sits at 6.7 per cent, far above the central bank鈥檚 two per cent target.
In a before the Women in Capital Markets this week, senior deputy governor Carolyn Rogers acknowledged Canadians鈥� uncertainty with the current economic climate.
鈥淲e are acutely aware that, with some of the extraordinary actions we have taken during the pandemic and with inflation well above our target, some people are questioning that trust,鈥� she said.
鈥淭ough questions, added scrutiny and informed debate are entirely appropriate in the current environment. We welcome them as an opportunity to engage with Canadians about what we do, how we do it and how we can improve.鈥�
Dodge said the danger of losing public trust is 鈥渁lways there鈥� and as such communication from the top is 鈥渧ery, very important in that regard.鈥�
鈥淏ut they have to be nervous. As does the ordinary citizen, has to be nervous about a future we do not know. We do not know how the geopolitical situation in the world is going to play out. We do not know how the pandemic situation is going to play out,鈥� he said.
